Billions at stake over President Uhuru Kenyatta team’s standoff with US, EU

Kenya University Students Organisation (Kuso) leaders show their solidarity with the academic and non-academic staff of universities following the ongoing lecturers’ strike in Eldoret at the weekend. The students want the Government to intervene and end the strike before they decide on their next move. [PHOTO: Peter Ochieng/STANDARD]

By ROSELYNE OBALA

Kenya: The country risks losing up to Sh14.7 billion in donor cash following delays by President Uhuru Kenyatta’s government to sign crucial agreements with the givers.

The Standard learnt that Sh8 billion ($50 million) for the Ahadi Fund from an agency of United States meant for civic education in regions and other projects in the national and county governments is at stake. Kenyan officials were to sign the deal with US Agency for International Development (USAid) last month, but that never happened.

The Government had earlier accused USAid of working to destabilise President Kenyatta’s administration, a charge the US government denied.

Another is the Kenya Rural Development Programme funded by the European Union to the tune of Sh6.7 billion for projects in Arid and Semi-Arid Areas.

The National Treasury is yet to sign the agreement since last year.

Governors are now crying foul that the perceived frosty relations between the Jubilee administration and key donors could undermine donor-funded development projects in counties.

Yesterday, the Council of Governors warned that if the situation is not addressed, Kenya stands to lose as some international non-governmental organisations (NGOs) funded by these donors have begun shifting base to Ethiopia and South Sudan.

CRUCIAL ROLE

Council chairman Isaac Ruto argued that operations of affected NGOs have been hampered by lack of funds, yet they play a crucial role in counties, especially in sectors such as Health, Education, Water and Sanitation and Agriculture in pastoral and drought-prone areas.

Mr Ruto, who is also the Bomet Governor, lamented there is serious concern and that President Kenyatta’s Government should support the donors in their endeavours in the country.

“The Government should not frustrate the donors but instead commit totally to ensure projects rolled out are a success,” Ruto said.

He urged the Government to ensure timely signing of requisite documents to give them a free hand in implementing their projects.

Ruto expressed regret that governors’ biggest dilemma is their inability to resolve the matter through internal consultations.

“These funds will go a long way in assisting development in counties and that’s why we must commit to working with the NGOs,” he added.

Governors Ahmed Abdullahi Mohamed (Wajir) and Ukuru Yattani (Marsabit) said donors play an integral role in assisting counties implement projects.

“The national or county governments should not stand in the way of development,” said Yattani. “This bottleneck seems like just a way to exasperate the donors and delay the funding process,” he added.

Yattani said it was unfortunate that in Marsabit, where many international NGOs are based, they have scaled down their operations to 10 per cent since last year.

“This is not a good indicator for a country currently struggling with a ballooning wage bill,” he added.

Mohamed said: “NGOs have been at the forefront in helping in resettlement of conflict victims in some counties and also in peace building initiatives.”

Competition for resources that has fuelled internal conflicts and drought has in the past been addressed jointly with NGOs interventions.

The governors warned that if donors withdrew their support, counties would be burdened with projects yet they had insufficient funds.

The Standard has established that of this amount, $30 million is for civil education while $20 million is to be shared between the two levels of government to support various sectors.

The agreement was to have been signed by the Ministry of Devolution on February 19.

Last month, the National Security Advisory Committee, through a statement issued by Secertary to the Cabinet Francis Kimemia, accused USAid of funding protests to undermine the Kenyan Government.

But President Barack Obama’s administration, through a statement by US Ambassador in Nairobi Robert Godec, responded that “allegations, including those in the February 12 statement by the National Security Advisory Committee, that the Government of the United States seeks to “undermine” or “destabilise” the Government of Kenya are false”.

REQUISITE DOCUMENTS

But the Kenya Government has denied accusations it declined to sign the requisite documents with donors. Devolution Ministry Principal Secretary John Konchella acknowledged he was aware of Ahadi Project, and explained the planned deal is yet to be signed because the Government is putting in place measures on how to implement the project.

“I am aware of the fund. What I am not privy to is the fact that a fraction of the fund is to be shared between the two levels of Government for other development projects,” he said.

Konchella added: “From where I sit, the Ahadi Fund is supposed to finance civic education programmes in counties.”

The PS stressed that what the donors must adhere to is set the mode of financing, so that the projects are relevant to the people.

“Initially, the donors have been funding civic education projects in counties without involving the Government yet we need to scrutinise and ascertain their relevance to the people,” he explained.

Konchella said the delay was not ill-intentioned, emphasising that they must check and confirm that the projects implemented are of interest to the peoples and counties concerned.

He recalled that last October, the national and county governments held meetings with the donors to deliberate on the way forward in implementing projects they fund in the country.

He reiterated that the Government was not trying to frustrate the activities of donors in the country, explaining that key donors like World Bank, United Nations Development Programmme (UNDP), Danish Aid Agency (Danida), Japan International Cooperation Agency (Jica), USAid, and European Union (EU) among others are involved in the project.

He disclosed that the Kenya School of Government had developed a curriculum and begun training of trainers in the 47 counties. The PS said in each county, 40 people are trained.

“We agreed on a common basket to pool all the resources to enable the exercise become a success. This curriculum will assist all major players to align themselves to promote uniformity,” he explained.

But he said he was not aware of the EU project — Kenya Rural Development Programme (KRDP) — meant to mitigate drought and enhance food security in Arid and Semi-Arid Areas to be implemented under Drought Management Authority.

The Standard has learnt that EU was set to sign the agreement with the National Treasury late last year, to fund agricultural development to the tune of Sh6.7 billion for a period of between three to five years.